BENGALURU : Financial year 2020-21 was catastrophic for the finances of most Indian states, which were in any case already reeling from an economic downturn over the past few years.
The pandemic decimated collections from conventional revenue sources, while stretching the states’ expenditure on healthcare.
This, coupled with a significant delay on the Centre’s part in disbursing states their share of taxes has pushed many of them to the brink.Against this backdrop, the recent budgets presented by state governments for the forthcoming fiscal year can be interpreted as a response to the carnage of the past year, as well as charting a new course toward financial stability and recovery.